The term "container rollover" is commonly used in the shipping and logistics industry, but not everyone is familiar with what it actually means.
A "container" refers to a shipping container, also known as a sea freight container.
Container rollover does not mean physically throwing a container away!
The correct explanation of container rollover is:
A shipping container is booked on a specific vessel and scheduled to be shipped out.
However, when it is time for customs clearance and loading onto the vessel, the shipping line informs that the container did not make it onto the ship.
This could be due to the vessel reaching its full capacity, meaning the container has to wait for the next available sailing.
In short, the container is "rolled over" to the next scheduled vessel.
Container rollovers often occur during peak shipping seasons or on high-demand routes.
This happens because shipping lines oversell container slots by 10-20%, similar to how airlines sometimes overbook flights.
Once the vessel reaches its maximum weight or space limit, the extra 10-20% of containers will have to be postponed to a later shipment—this is what we call a rollover.
Rollovers can happen to both Full Container Load (FCL) and Less than Container Load (LCL) shipments.
The traditional peak shipping season is July to August each year. However, market conditions can shift. For example, in some years, freight rates may rise earlier than expected, leading to container shortages even before the usual peak season.
It’s always best to check with your freight forwarder to understand the latest shipping conditions.
Is container rollover completely random? Yes and no.
However, the following types of shipments are more likely to experience rollovers during peak seasons:
Containers that enter the terminal late
Shipments with lower freight rates
Containers from shippers who do not have a strong relationship with the shipping line
On the other hand, LCL shipments have a slightly lower chance of rollover. This is because LCL shipments contain multiple consignments from different customers, making it more important for freight forwarders to ensure they get loaded on time.
Container Rollover ≠ Shipment Delay
A rollover happens when the container has cleared all inspections, customs, and is ready to go, but due to the shipping line's overbooking, there is no available space.
A shipment delay usually happens due to issues with the cargo, customs clearance, or inspections, making it impossible to meet the scheduled departure. In this case, the shipper needs to request a change in sailing date.
So, while both situations result in a delay, the causes are different!
If you’re shipping during peak seasons, work with a reliable freight forwarder to minimize the chances of container rollovers. Planning ahead and securing space early can help ensure your goods are shipped on time!